Automakers, South Korea Nudge US To Consider Commercial EV Tax Credit: Report

Automakers, South Korea Nudge US To Consider Commercial EV Tax Credit: Report
  • Major automakers, along and the government of South Korea, have asked the U.S. government to consider a commercial electric vehicle tax credit.
  • The move, if implemented, is bound to amplify consumer access to electric vehicles, Reuters reported.
  • Major automakers producing electric vehicles outside U.S. are irked after the $430 billion U.S. Inflation Reduction Act (IRA) terminated $7,500 consumer tax credits reserved for EVs produced outside North America.
  • The most affected countries are South Korea, the European Union, and Japan.
  • The report added that Rivian Automotive, Inc. RIVN, Hyundai Motor Co., Ltd. HYMTF, and Kia Corp among others want the administration to let consumer vehicle leasing qualify for the commercial EV tax credit.
  • Also Read: Ford Registers 7.8% Drop In November US Sales; EVs Jump 103%
  • In order to find a way to address the concern of manufacturers from other countries, the parties have urged to implement a lesser known provision of "commercial clean vehicles" in the IRA.
  • The government of South Korea has requested to broaden the commercial clean vehicles' interpretation to include rental cars and leased vehicles used by aggregators, including Uber Technologies, Inc. UBER and Lyft Inc LYFT.
  • The point was echoed by a lot of EV manufacturers, including Hyundai and Toyota Motor Corporation TM.
  • Also Read: Volkswagen CEO Plans To Present Software Roadmap On December 15
  • Photo Via Company

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